After the release of the PPI and US jobs report at the end of September and the beginning of October, all eyes turned to the next key factor that will determine the Fed’s next move: the Consumer Price Index.
The US Bureau of Labor Statistics just released the data, showing that the actual year-over-year increase of 3.7% is slightly higher than the estimated 3.6%, while the month-over-month rise matched expectations at 0.6%.
Core CPI, which excludes more volatile sectors such as energy and food, rose 2.6% YoY and 0.3% MoM. Estimates were again slightly lower at 2.5% and 0.2%, respectively.
Bitcoin reacted with an immediate nosedive that pushed it south by a grand. The asset stood at around $83,800 before it dropped to $82,800 in the initial minutes after the CPI data went live.
Lacie Zhang, Research Analyst at Bitget Wallet, told CryptoPotato that a similar reading (higher than expected) could “trigger a sharper repricing.”
“The biggest risk investors may be underpricing is that sticky core inflation — driven by energy spillovers, tariffs or sustained demand — keeps the Fed on a higher-for-longer path beyond the single additional hike many still expect later this year,” she added.
She outlined the next major support line for BTC at $81,000-$82,000, suggesting that the cryptocurrency could soon retest it if selling pressure intensifies after the CPI.
The post Bitcoin Price Plunges as September CPI Comes Out Higher Than Expected appeared first on CryptoPotato.
The core CPI was also higher than anticipated. Crypto News, social, SocialFB, Top News, Bitcoin (BTC) Price, United States
This articles is written by : Nermeen Nabil Khear Abdelmalak
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